GOVERNMENT SCHEMES FOR VARIOUS SAVINGS & INVESTMENT OPTIONS

Government Schemes: The Government of India offers various schemes that accept deposits from the public, some of which are also tax-saving instruments. Examples include:
- National Savings Certificates
- Kisan Vikas Patra
- Post Office Savings Certificates
- Sukanya Samrudhi Deposit
- Public Provident Fund (PPF)
Sukanya Samrudhi Yojana:
- Objective: To promote the welfare of the girl child.
- Eligibility: A natural or legal guardian can open an account on behalf of a girl child who is 10 years old or less.
- Key Features:
  - Maximum of two accounts per family (three in case of twin girls as the second birth, or the first birth resulting in three girl children)
  - Tax deduction under Section 80C of the Income Tax Act, 1961
  - Premature closure allowed in case of the depositor's death or on compassionate grounds
  - Mode of deposit: Cash, Cheque, Demand Draft, or digital payment
  - Withdrawal: A certain portion of the balance can be withdrawn for higher education and marriage after the girl child turns 18
Pradhan Mantri Jan Dhan Yojana (PMJDY):
- Objective: To ensure financial inclusion of every individual without a bank account in India.
- Key Features:
  - Accounts can be opened with any bank branch or Business Correspondent (Bank Mitra)
  - Facilities include:
    - Zero balance account
    - RuPay debit card
    - Accidental insurance cover and life cover
    - Overdraft facility up to a certain amount
    - Mobile banking for balance check and fund transfer
    - Interest on deposits
    - No minimum balance requirement
    - Direct Benefit Transfer for government scheme beneficiaries
    - Easy access to pension and insurance products

Basic Insurance Schemes Run by Government of India

Pradhan Mantri Suraksha Bima Yojana:
- Objective: To provide accidental insurance cover to bank account holders between 18 and 70 years old.
- Key Features:
  - Fixed annual premium deducted from the bank account
  - Covers permanent and partial disability due to accidents
Pradhan Mantri Jeevan Jyoti Bima Yojana:
- Objective: To provide life insurance cover to bank account holders between 18 and 50 years old.
- Key Features:
  - Fixed annual premium deducted from the bank account
Pradhan Mantri Jan Aarogya Yojana - Ayushman Bharat:
- Objective: To provide healthcare facilities to poor, deprived rural families and identified occupational category of urban workers' families.
- Key Features:
  - No restriction on family size, age, or gender
  - All members of eligible families are automatically covered
  - No payment required for hospitalization treatment
  - Covers pre-existing conditions from day one
Pradhan Mantri Fasal Bima Yojana:
- Objective: To provide crop insurance to farmers against crop failure.
- Key Features:
  - Compulsory for farmers who have availed institutional loans
  - Covers a wide range of external risks like droughts, floods, and pests
  - Post-harvest losses covered up to 14 days

Other Savings/Insurance Schemes Run by Government of India

Kisan Vikas Patra:
- Objective: To inculcate long-term financial discipline in people.
- Key Features:
  - Small saving certificate scheme from India Post
  - Minimum investment of ₹1000, with no maximum limit
  - Can be purchased by adults and minors above 10 years old
Public Provident Fund (PPF):
- Objective: To provide a tax-free savings scheme.
- Key Features:
  - Can be opened with a post office or nationalized/private bank
  - Joint accounts not allowed, only one account per citizen
  - Investments eligible for deduction under Section 80C of the Income Tax Act
  - Loans available against PPF investments
National Savings Certificate (NSC):
- Objective: To invest while saving on income tax.
- Key Features:
  - Can be opened from any post office
  - Joint accounts allowed, can be opened by an adult on behalf of a minor
  - Deposits qualify for tax rebate under Section 80C of the IT Act

Pension Schemes Run by Government of India

Atal Pension Yojana (APY):
- Objective: To provide a fixed pension amount to unorganized sector workers.
- Key Features:
  - Minimum age of joining is 18 years, maximum age is 40 years
  - Exit before 60 years not permitted, except in case of death or terminal disease
  - Spouse can continue the scheme after the beneficiary's death

Borrowing Related Schemes of Government of India

Educational Loans through Vidyalakshmi Portal:
- Objective: To provide an easy and effective system for getting educational loans.
- Key Features:
  - Web address: www.vidyalakshmi.co.in
  - Common educational loan application form available
  - Students can view the status of their loan application
Prime Minister Awas Yojana:
- Objective: To provide credit-linked subsidy for lower-income groups and economically weaker sections.
- Key Features:
  - Eligible for first-time home buyers or new construction
  - Property must comply with scheme guidelines
Pradhan Mantri Mudra Yojana (PMMY):
- Objective: To offer business loans to proprietors or entrepreneurs of small and medium enterprises.
- Key Features:
  - Loan schemes: SHISHU, KISHOR, and TARUN
  - Eligibility: Non-corporate small business segment, including proprietorship, partnership firms, and small manufacturing units
  - Key documents required: Proof of identity, quotation of items purchased, and category certificates
Stand up India:
- Objective: To facilitate bank loans to SC/ST and/or women entrepreneurs above 18 years old.
- Key Features:
  - Purpose of loan is for setting up a new enterprise in manufacturing, trading, or services sector